A cost segregation study can accelerate depreciation deductions, but only when its classifications, cost allocations, estimates, and supporting documentation withstand scrutiny. This two-hour self-study IRS continuing-education course explains how IRS engineers evaluate cost segregation studies under the IRS Cost Segregation Audit Techniques Guide. Participants will learn how to distinguish Section 1245 property from Section 1250 property, assess engineering methodologies, review report documentation, identify unsupported assumptions, and recognize common issues that increase examination risk.

Taught by James Peacock, a former IRS LB&I Engineer Specialist and cost segregation subject-matter expert who helped develop IRS guidance and trained examiners nationwide. This course provides a comprehensive exploration of cost segregation studies from both technical and compliance perspectives, emphasizing what truly distinguishes a high-quality, IRS-defensible report. Drawing from the IRS Cost Segregation Audit Techniques Guide and the instructor’s experience as a former IRS engineer and cost segregation subject-matter expert, the course explains how studies are evaluated, documented, and defended. Participants will gain practical understanding of how to evaluate, perform, and document cost segregation studies. Practitioners should also understand that accelerated depreciation classifications may affect recapture and gain characterization when the property is later sold.

By the end of this session, tax professionals, engineers, and financial advisors will be equipped to recognize the hallmarks of a quality cost segregation study and avoid costly mistakes in the process.